26, July, 2025
# Sign In
  1. Home
  2. Market Highlights

Market Highlights

Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

February 24, 2024

  • *Can India catch up with China's weight in MSCI index over next 5-6 years?*
  • Nilesh Shah, MD, Kotak AMC, says “if our governance standards falter like it has faltered in Russia, China, Brazil and South Africa, then certainly the premium valuation which we are enjoying will not be available. So as long as the 3G of growth, governance, and green is better than the peers, financial markets have a chance of staying ahead of the economic market as people discount the future and give higher weight to it. If we falter on any one of this, then certainly the financial market will be lower than the economic real GDP.”
  • *_Six years ago, we spoke about how India's weightage in the MSCI Index was all set to go higher. China was the dominant one. And look at that tweet where we are just revisiting what he, in a sense, predicted. In this case, we can say in Hindi, look, he said it. So, Nilesh bhai, you said it. Now it is done._*
  • Yes it feels good that we could predict how India will rise and why global savings should come towards India rather than China. Obviously, a lot of work has gone in ensuring this. The reason why we had to engage with MSCI to increase our weight is that a lot of passive funds, almost $2 trillion worth today, follow MSCI emerging market benchmark.
  • If our weight goes up, we will receive more flows. All the other active fund managers, majority of them follow MSCI indices. In some sense, it is fair to say, higher the weightage in the index, higher the allocation out of global savings towards your country. If our weights would have gone down, then we would have not only lost future flows, but also people would have redeemed from their invested amount in India. And which is why it was important to engage.
  • I am really happy that our regulatory authorities did manage that proactively. And today, we have moved from 8% to 18% in six years. Whereas China, instead of going from 30% plus to 50% plus, is now 25%.
  • *_In terms of weightage in the next three-five years, can we go as high as China, which was 30% at peak?_*
  • Never say never. We will all hope, pray and work towards achieving that. Of course, there are two immediate things which should happen and increase India's weight further. One, Korea is considered as part of the emerging market. Their president, in their election campaign, has talked about Korea becoming part of the developed market. I hope and pray, at some point of time, a $35,000 per capita GDP country moves out of the emerging market into the developed market. If that happens, then the low double-digit weight of Korea will get divided among other emerging markets, including India.
  • The second thing which we have to achieve is that one of our banks is included at 50% weight in MSCI index. It should be included at 100% weight. Why give discounted treatment? If these two things happen over the next 6-12 months, we should see a reasonable increase in India's weight. And if luck favours the teens, we will go into our 20s. Then the gap between us and China will narrow further.
  • Over the next five-six years, there is a reasonably good chance that if we maintain our economic growth and valuation, then we should be where today's China's weight is.
  • *_Do you see that in the next three to five years, the financial market economy will be growing at a rate which will be significantly higher than the real economy? If India, let us say, doubles in five, six or seven years, when the real economy becomes $4 trillion to $8 trillion, the financial market economy will achieve that at least a year or a year and a half before the real economy doubles._*
  • In some sense, when our financial market or financial market cap is higher than the real economy, it is factoring in the future. The world believes that India's growth rate will be better than its peers. Its governance standards will be better than its peers. And probably somewhere not discounted, but believed, is that the green transformation of India will be better than its peers. Today, China is the world's largest contributor to environmental issues. The carbon emission is the largest in China. On per capita basis, India is the lowest per capita carbon emitter. Of course, China on a per capita basis is not the highest. That honour goes to the developed world.
  • Now we will have to remain the lowest per capita carbon emitter. Our growth should happen without damaging the environment. If we continue to maintain this trend of going above our peer group, having governance standards at par with developed world and better than emerging market and doing green transformation where India continues to remain lowest per capita carbon emitter or in the lowest decile or quartile of per capita carbon emitter, then I have no doubt in my mind that as our economic size doubles, financial market cap or markets will probably remain higher than the economic size.
  • *_If someone says, this is India's Amrit Kaal. I want to stay invested. But market’s at an all-time high and valuation's at an all-time high. Financial markets have already seen a runup. Could there be a situation where the economy will continue to grow. The stock market could lag the economic return? Could it happen the other way around?_*
  • Undoubtedly, even that can happen. If our future economic growth starts falling or faltering vis-à-vis our peers, then certainly the premium valuation which we are getting today in the 20s will not be available. If our governance standards falter like it has faltered in Russia, China, Brazil and South Africa, then certainly the premium valuation which we are enjoying will not be available. So as long as my 3G of growth, governance, and green is better than my peers, financial markets have a chance of staying ahead of the economic market as people discount the future and give higher weight to it. If we falter on any one of this, then certainly the financial market will be lower than the economic real GDP.
  • *Foreign funds will be compelled to invest in Indian equities; Jefferies’ Chris Wood explains why*
  • Foreign investors are soon likely to be compelled to buy Indian companies' stocks because of under ownership among global investors despite a recent rise in market weight, said Christopher Wood, Global Head of Equity Strategy. In a Jefferies note, Chris Wood explained Indian equities’ strong earnings growth profile and track record of generating peer-beating returns. He said that rising Indian market weight and deep markets should attract incremental foreign flows to the country.
  • *_Under-ownership of Indian equities among foreign investors_*
  • Despite being the 5th largest stock market in terms of market capitalisation, India is ranked 8th in the Bloomberg World Index with a weight of 2 percent. This provides scope for foreign investors to increase investment into the fastest-growing country in the world, said Wood.
  • According to him, Indian equities are the most under-owned by global emerging markets active funds since 2014. He adds that while India’s weight in the MSCI EM index has increased, foreign investors have not shored up Indian equities in the same proportion. This will change moving forward, he said.
  • India’s weightage in emerging market indices has increased since 2020. Jefferies points out that India’s weightage in the MSCI EM index has increased to 17.9 percent now from 8 percent in June 2020. Wood said the increasing weightage of India in a global fund will make Indian stocks ‘a must have’ for a more diverse set of equity investors beyond the EM-focused ones.
  • The note also mentioned that Indian markets witnessed $20 billion in equity flows in 2023, which wasn’t as high compared to previous levels as a percentage of market cap, indicating potential for more inflows.
  • *_Underpentration of domestic funds in Indian markets_*
  • Wood also noted that Indian markets are underpenetrated by domestic funds compared to global standards. According to data compiled by the World Bank, only 5 percent of Indian household savings are in equities. Mutual fund assets-to-GDP is at 16 percent, which is lower compared to the global average of MF assets to GDP at 60 percent. With more and more investors now becoming aware of mutual funds, Jefferies expects more savings to flow into Indian equity markets.
  • *Very Good Morning!!!*
  • *US Markets in detail ..Have A Great Weekend*
  • *GIFTNifty: 22,290: +41: +0.18%*
  • *On Monday:*
  • -*Listing of new Bonus of equity shares of Akshar Spintex Limited*
  • 4,99,98,000 Bonus equity shares of Re. 1/- each allotted on February 17, 2024.
  • *Listing of Bonus equity shares of K.P. Energy Limited*
  • 4,44,60,000 Bonus equity shares of Rs. 5/- each allotted on February 13, 2024.
  • *IPO’s with gmp’s*
  • *Juniper Hotels : 21/2-23/2…Issue Size: 1800 cr*
  • Last heard: 3, IPO px: 360, Est Listing 363 (+1%).. Listing 28/2/24
  • *GPT Healthcare: 22/2-26/2…Issue Size: 525.14 cr*
  • Last heard:13, IPO px: 186, Est Listing 199 (+7%).. Listing 29/2/24
  • *Exicom Tele-Systems : 27/2-29/2 …Issue Size: 429 cr*
  • Last heard: 115, IPO px: 142, Est Listing 257 (+81%)… Listing 5/3/24
  • *Platinum Industries : 27/2-29/2…Issue Size: 235 cr*
  • Last heard: 90, IPO px: 171, Est Listing 261 (+53%)… Listing 5/3/24
  • *Mukka Proteins : …Issue Size: 225 cr*
  • *Purv Flexipack NSE SME IPO: 27/2-29/2…Issue Size: 40.21 cr*
  • Last heard: 100, IPO px: 71, Est Listing 171 (+141%)… Listing 5/3/24
  • *Deem Roll Tech NSE SME… IPO: 20/2-22/2…Issue Size: 29.26 cr*
  • Last heard: 64, IPO px: 129, Est Listing 193 (50%) …. Listing 27/2/24
  • *Owais Metal and NSE SME: 26/2-28/2…Issue Size: 42.69 cr*
  • Last heard: 11, IPO px: 87, Est Listing 98 (13%) …. Listing 4/3/24
  • *Zenith Drugs NSE SME: 19/2-22/2.. Issue Size: 40.86 cr*
  • Last heard: 20, IPO px: 79, Est Listing 99 (25%)…Listing 27/2/24
  • *Provisional Cash Rs. In Crs. (23rd Feb)*
  • FIIs +1,276 (15,747 – 14,471)
  • DIIs +177 (8,556– 8,380)  
  • Sensex: 73,143 (-15) (-0.02%)
  • Nifty: 22,213 (-5) (-0.02%)
  • BankNifty: 46,812 (-108) (-0.23%)
  • NiftyIT: 37,406 (-624) (-1.64%)
  • MIDCAP: 49,280: +151: +0.31%
  • NSE Auto: 20,621: +37: +0.18%
  • NSE FMCG: 54,338 (-81) (-0.15%)
  • Dow: 39,132: +62: +0.16%
  • S&P: 5,089: +2: +0.03%
  • Nas: 15,997 (-45) (-0.28%)
  • Brazil: 129,419 (-822) (-0.63%)
  • Ftse: 7,706: +22: +0.28%
  • Dax: 17,420: +49: +0.28%
  • Cac: 7,967: +55: +0.70%
  • MOEX: 3,142: +3: +0.09%: shut
  • WTI Oil: $76.49 (-2.7%)
  • Brnt: $81.74 (-2.31%)
  • Natural Gas: 1.60 (-7.45%)
  • Gold: $2049: +19: +0.92%
  • Gold 22 Carat/g: 5,838 () (%)
  • Silver: $23.19: +0.81%
  • Copper: $390 (-0.37%)
  • Cotton: $93.49 (-1.03%)
  • Copper (LME): $8,585: +43: +0.5%
  • Alluminum (LME): $2,198 (-22) (-0.97%)
  • Zinc (LME): $2,387 (-8) (-0.33%)
  • Tin (LME): $26,170 (-126) (-0.48%)
  • Eur-$: 1.0821 (-0.02%)
  • GBP-$: 1.2672: +0.09%
  • Jpy-$: 150.51 (-0.01%)
  • Re: 82.9487: +0.13%
  • USD-RUB:  94.867: +2.01%   
  • US10yr: 4.25%: -7 bps
  • GIND10YR: 7.077: +0.21%
  • $ Index: 103.964: +0.01%
  • Vix: 13.75 (-5.43%)
  • India Vix: 14.97 (-1.51%)
  • BalticDry: 1,752: +76: +4.53%
  •   
  • *ADR/GDR* 
  • Cogni: +0.45%
  • Infy (-0.98%)
  • Wit: +0.47%
  • IciciBk (-1.25%)
  • HdfcBk (-0.71%)
  • DrRdy: +1.06%
  • TatSt (-2.82%)
  • Axis (-0.60%)
  • SBI (-0.76%) 
  • RIGD: +0.97%
  • INDA: +0.17% (IShares MSCI INDIA ETF)  
  • INDY (-0.02%) (IShares MSCI INDIA 50 ETF) 
  • EPI (-0.1%) (Wisdom Tree India Earning)
  • PIN: +0.28% (Invesco India Exchange Traded Fund Trust)
  • *US Markets*
  • - On Friday, U.S. stocks mostly closed higher, with the Dow Jones Industrial Average and S&P 500 reaching fresh record highs, while tech stocks saw some decline following a recent rally fueled by enthusiasm for artificial intelligence (AI).
  • - Nvidia Corp., a megacap chip maker, extended its rally, contributing to the overall positive sentiment in the market. The S&P 500 briefly surpassed 5,100, driven by record-setting performances.
  • - Bank of America Corp.'s Michael Hartnett highlighted the rally in AI and optimism about economic growth as factors driving market gains.
  • - The Dow gained 1.3%, the S&P 500 rose 1.7%, and the Nasdaq Composite advanced 1.4% for the week.
  • - The volume on U.S. exchanges was 10.64 billion shares, compared with the 11.6 billion average over the last 20 trading days.
  • - Nvidia's blowout earnings results boosted the S&P 500 on Friday, with the chip maker's stock reaching a record high after a surge of 16.4% on Thursday. The surge in Nvidia's shares resulted in significant paper losses for short sellers, totaling about $3 billion, according to S3 Partners LLC. It briefly traded above $2 trillion in market valuation for the first time.
  • - Despite overall gains, big tech companies, including Apple, Microsoft, Alphabet, Amazon, Meta Platforms, and Tesla, mostly fell on Friday.
  • - Looking ahead, economic indicators such as GDP growth in the fourth quarter of 2023 and inflation data for January will be closely watched. On a monthly basis, the PCE index is expected to increase 0.3%, according to a Reuters poll of economists, up from a 0.2% rise the prior month.
  • - Next week will also bring other data including on consumer confidence and durable goods that will give a broader look into the state of the economy. A number of the companies due to report results in the coming week, including Lowe's opens new tab and Best Buy opens new tab, are retailers who will give insight into consumer spending.
  • - Futures tied to the Fed’s main policy rate on Friday showed investors pricing in around 80 basis points of Fed cuts this year, compared to 150 basis points they had priced in early January.
  • - While concerns about a potential tech bubble persist, Barclays Plc strategists noted that as long as stock prices align with earnings fundamentals, investors are likely to maintain a "fear of missing out" mentality.
  • - However, the advance lacked broad participation, with only 73% of the S&P 500's members advancing, indicating a narrow rally.
  • - Goldman Sachs economists revised their forecast for Fed rate cuts, now expecting four reductions this year, with the first in June, while JPMorgan Chase & Co. raised its year-end forecast for Treasury yields to 3.80%.
  • - European stocks closed higher Friday, extending positive momentum after the pan-European benchmark finished at a record high.
  • - Earnings from Standard Chartered showed an 18% increase in pre-tax profits, pushing shares up 9.8% before paring gains. Meanwhile, Allianz shares sunk 3.2% after fourth-quarter operating profits in its property division came in below expectations.
  • - Oil fell as the lack of fresh drivers prompted some investors to exit positions ahead of the weekend and the dip below a key technical indicator accelerated selling. West Texas Intermediate slipped nearly 3% to end the session under $77 a barrel, below its 200-day moving average and the lowest close since Feb. 8. Timespreads are indicating a more robust market, and US crude inventories expanded less than forecast, but many analysts still expect a global surplus this year. WTI still is up about 7% this year. A package of new US sanctions against Russia didn’t appear to include major energy-related curbs, and media reports suggested Israel will send negotiators to truce talks in Paris on Friday.
  • - Oil has been caught between the bullish tailwinds of lower OPEC output and rising Middle East tensions, and bearish concerns about flagging consumption in top importer China. The International Energy Agency said earlier this month that the global oil market could remain in surplus all year.
  • - U.K. consumer confidence dipped in February, new survey data from GfK showed Friday, indicating that higher inflation continues to weigh on hopes of an economic upturn.
  • - In Asia-Pacific, markets finished mostly higher, with China stocks rising for the ninth straight session as investors digested property prices data.
  • *Corporate Highlights:*
  • • Jeff Bezos, Nvidia Corp. and other big technology names are investing in a business that’s developing human-like robots, according to people with knowledge of the situation, part of a scramble to find new applications for artificial intelligence.
  • • Warner Bros. Discovery Inc. reported fourth quarter revenue and profits that fell short of Wall Street forecasts amid declining TV advertising sales and weakness at its studios business.
  • • Payments company Block Inc. reported results and first-quarter expectations that exceeded analysts’ estimates
  • • Booking Holdings Inc. gave a disappointing forecast for travel reservations and gross bookings, with the war in Israel and currency fluctuations weighing on results.
  • • Carvana Co. topped Wall Street’s profit expectations in the final months of 2023 and said it expects improved earnings this quarter as the used-car retailer defies the challenges of high interest rates and inflation.
  • • Intuit Inc.’s stock rose 0.3% after the company reported earnings that surpassed Wall Street’s expectations.
  • • Rivian Automotive Inc. shares sank slightly more than 12% after the company’s earnings miss on Wednesday.
  • *Currencies*
  • • The Bloomberg Dollar Spot Index was little changed
  • • The euro was little changed at $1.0822
  • • The British pound was little changed at $1.2670
  • • The Japanese yen was little changed at 150.50 per dollar
  • *Cryptocurrencies*
  • • Bitcoin fell 1.1% to $51,088.63
  • • Ether fell 1.1% to $2,952.59
  • *Bonds*
  • • The yield on 10-year Treasuries declined seven basis points to 4.25%
  • • Germany’s 10-year yield declined eight basis points to 2.36%
  • • Britain’s 10-year yield declined seven basis points to 4.04%
  • *Commodities*
  • • West Texas Intermediate crude fell 2.6% to $76.60 a barrel
  • • Spot gold rose 0.6% to $2,036.47 an ounce
  • Regards,
  • *Himanshu Marfatia*
  • *InCred Capital*
  • *Equity Sales*
  • *9322265340*
  • *himanshu.marfatia@incredcapital.com*
Panchkarma